DF Capital – 2025 Finals point to greater profits, whilst showing shares are cheap at 55p, brokers TP 90p

Mark Watson-Mitchell - 07.04.2026

A fortnight ago, the £91.1m-capitalised DF Capital (LON:DFCH) declared a very good set of Final figures for the finance group’s 2025 trading year.

At the end of January this year, this group’s shares were trading at a High of 68p, more than double the Low of 32p scored towards the end of April a year ago.

After the results, which were a very good read, the shares have traded within the 60p to 52.50p range.

Now at 55.50p, trading on just 6.7 times historic earnings, I consider that they offer very good value and an appealing upside.

The Business

DF Capital is a speciality lending bank providing award-winning commercial finance solutions and savings products to consumers and small businesses.

Its lending supports the sales of manufacturers, dealers and distributors across a diversified range of both commercial and leisure sectors.

In 2020, the Group became a fully authorised bank and started offering a range of consumer savings products that underpin its lending activities.

The Manchester-based DF Capital was founded in 2016 to support the working capital needs of manufacturers and UK dealers.

Having received full authorisation as a bank, the group now works with 109 manufacturers and over 1,522 dealers and borrowers in the leisure, commercial and powersports sectors.

Last year it provided over £1.8bn of new loan origination across those sectors.

It supports dealers and manufacturers with working capital solutions, with its inventory finance products enabling manufacturers to maximise their distribution networks and allow dealers to purchase more assets, or free-up working capital from cash held in stock.

The commercial lending has been largely funded by its consumer savings deposits.

The group has an award-winning offering and serves over 14,500 active customers via its online platform.

2025 Final Results

On Monday 23^rd March, the group reported a strong financial performance for the 12 months to end-December 2025, with a deposit book growth of 29% to £841m and a loan book increase of 27% to £846m, driven by £1.83bn in new loans advanced.

The company achieved a gross revenue of £90.9m, a 19% increase, and net income rose by 23% to £56.0m, resulting in an adjusted profit before tax of £18.1m, up 26%.

The cost-to-income ratio improved to 57%, and the adjusted return on tangible equity reached 11.9%.

The CET1 ratio stood at 18.0%, and the company reaffirmed its medium-term targets, including a loan book exceeding £1.5bn by 2030.

Management Comment

CEO Carl D'Ammassa, who was formerly MD of Aldermore Bank and was previously with GE Capital and Hitachi Finance, stated that:

"I'm proud of these outstanding results, undoubtedly our best year so far.

We have delivered on our financial targets, exceeding expectations in almost all areas, launched new products and services, continued to invest in technology and delivered record breaking results.

We've launched our new asset finance product through our "DFRNT" brand, built from the ground up to provide customers with a first-class digital experience.

Momentum will build in this new area through 2026 as we tap into annual sales of over £10bn across our existing manufacturer and dealer base.

The market opportunities ahead of us as a multi-product lender, whilst always being committed to the niche segments in which we operate, are significant.

We have all the tools in our armoury to deliver on our ambitious medium-term objectives through to 2030, building on these exceptional 2025 results.

The foundations are all in place and I'm excited for the Group's future prospects."

The Equity

There are some 166.73m shares in issue.

The larger holders include Watrium AS (Oslo) (18.34%), Janus Henderson Investors (10.41%), River Global (9.84%), Lombard Odier Asset Management (9.54%), UBS Securities (8.90%), Crucible Clarity Fund (Douglas) (5.18%), Premier Miton Investors (4.90%), and Hargreaves Lansdown Asset Management (3.07%).

Analyst’s Views

At Panmure Liberum, its analysts Rae Maile and Ross Luckman have a Buy note out on the business, with a very handsome Target Price of 90p.

They are very confident of the group’s value and consider that:

“On conservative estimates we believe that profits can more than double by 2030, with the share price more than matching.”

It was a very strong year of delivery across the board, even more so given that expectations had increased through the year.

For the current year to end-December, on a closing group loan book of £905.1m (£846.4m), the analysts look for the group to show underlying pre-tax profits of £19.4m (£18.1m), with diluted earnings of 8.1p (7.8p) per share.

For the 2027 year, their estimates are for a closing group loan book of £1,029.9m, with £23.8m profits and 10.0p of earnings per share.

SQC Research View

The analyst estimates identify the shares of DF Capital as being very inexpensively rated at just 55.50p, they could so easily rise to 75p and still appear cheap.

(Profile 08.04.22 @ 41p set a Target Price of 51p*)

(Profile 30.05.25 @ 39p set a Target Price of 49p*)

(Profile 11.09.25 @ 55p set a Target Price of 69p)

DF Capital - Head Office Reception